asset management for municipal staff: the...

Asset Management for Municipal Staff: The Technical BasicsParticipant Workbook

This initiative is offered through the Municipal Asset Management Program which is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada.

About Rural Municipalities of Alberta

Rural Municipalities of Alberta (RMA) is an independent association comprising Alberta’s 69 counties and municipal districts. Since 1909, RMA has helped rural municipalities achieve strong, effective local government. RMA provides advocacy and business services, including RMA Trade, RMA Fuel, and RMA Insurance.

About Alberta Urban Municipalities Association

Founded in 1905, the Alberta Urban Municipalities Association (AUMA) represents 269 urban municipalities including cities, towns, villages, summer villages, and specialized municipalities. AUMA works to engage its members and has developed strategic partnerships with the federal and provincial governments and business and community stakeholders on a broad range of issues to strengthen the economic, social, cultural, and environmental vitality of its member municipalities.

About Infrastructure Asset Management Alberta

Infrastructure Asset Management Alberta (IAMA) represents the greater community of any person, organization, or agency with an interest in infrastructure asset management in Alberta. As part of meeting its mission and vision, IAMA coordinates three workshops per year to discuss current and emerging trends in asset management. In 2018, workshops will be held in Red Deer, Edmonton area, and Calgary area. The next workshop is in Nisku on June 13, 2018. For more information and to register, visit assetmanagementab.ca.

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FCM EN: fcm.ca/assetmanagementprogramFCM FR: fcm.ca/programmegestiondesactifsIAMA: http://www.assetmanagementab.ca

Table of Contents

Welcome ..................................................................................................................... 1Using the Workbook ................................................................................................ 2Definitions ................................................................................................................. 3Agenda ....................................................................................................................... 5Module 1: What is Asset Management? ............................................................... 7Background ................................................................................................................................................................... 7Asset Management in Canada ......................................................................................................................................................8Asset Management Tools ...............................................................................................................................................................9Canadian Infrastructure Report Card: How Sustainable Are Our Assets? .................................................................. 10What is the MAMP Readiness Scale? ....................................................................................................................................... 11Exercise 1.1: Assess Where You Are on the MAMP Readiness Scale ............................................................................. 12

Policy and Governance ............................................................................................................................................13Asset Management Policy Structure ....................................................................................................................................... 15Exercise 1.2: Create an Asset Management Policy.............................................................................................................. 16Asset Management Strategy ...................................................................................................................................................... 20Exercise 1.3: What is Your Asset Management Strategy? ................................................................................................. 22

Levels of Service and Risk .......................................................................................................................................23Strategic Level of Service ............................................................................................................................................................. 24Tactical Level of Service ............................................................................................................................................................... 25Operational Level of Service....................................................................................................................................................... 25Exercise 1.4: Working with Levels of Service......................................................................................................................... 26Risk ....................................................................................................................................................................................................... 28Exercise 1.5: Assessing and Managing Risk .......................................................................................................................... 29

Asset Management Leadership ...........................................................................................................................30Organization ................................................................................................................................................................................... 30Exercise 1.6: Organizational Roles and Responsibilities ................................................................................................... 32Council ............................................................................................................................................................................................... 33Community ....................................................................................................................................................................................... 34

Module 2: Asset Management Data Requirements ........................................... 37Asset Management Data Requirements ...........................................................................................................37Exercise 2.1: Asset Management Data – Using What You Have ..................................................................................... 39

Moving Beyond Existing Data...............................................................................................................................40Evaluating Asset Conditions ....................................................................................................................................................... 40Exercise 2.2: Asset Management Data – Sourcing More .................................................................................................. 41Tangible Capital Asset Data ........................................................................................................................................................ 42

Module 3: Asset Management Plans .................................................................... 45Asset Management Plans: Bringing It All Together .......................................................................................45Executive Summary ....................................................................................................................................................................... 46Introduction ..................................................................................................................................................................................... 46State of Local Infrastructure ....................................................................................................................................................... 46Levels of Service (Current and Desired) ................................................................................................................................. 46Goals and Approach ...................................................................................................................................................................... 46

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Financial Plan ................................................................................................................................................................................... 47Improvement and Monitoring Plan ......................................................................................................................................... 47Exercise 3.1: Through an Asset Management Lens/Breaking Down the Silos (Part One) .................................... 47Exercise 3.2: Decision-Making Through an Asset Management Lens (Part Two) .................................................... 55

Asset Management Plans: Build Your Own ......................................................................................................56Exercise 3.3: Building Your Plan ................................................................................................................................................ 57Introduction ..................................................................................................................................................................................... 57State of Local Infrastructure ...................................................................................................................................................... 59Levels of Service (current and desired) .................................................................................................................................. 60Exercise 3.3 LOS Table ................................................................................................................................................................... 61Goals and Approach ...................................................................................................................................................................... 62Financial Plan ................................................................................................................................................................................... 64Improvement and Monitoring Plan ......................................................................................................................................... 65Great Start! ........................................................................................................................................................................................ 66

Reference Material ................................................................................................... 671.1 Roles and Responsabilities ..............................................................................................................................671.2 Approaches and Resources ............................................................................................................................681.3 Canadian Infrastructure Report Card - Asset Management Primer .................................................691.4 FCM’s Municipal Asset Management Program Application Form ...................................................831.5 MAMP Readiness Scale ....................................................................................................................................931.6 A Guide to Developing a Municipal Asset Management Policy ..................................................... 1091.7 Sample Asset Management Policies ........................................................................................................ 1251.8 Sample Albertaville Council Report ....................................................................................................... 1351.9 Cross Functional Team Memo & Terms of Reference .......................................................................... 1391.10 Sample Career Opportunity – Red Deer County Asset Management Coordinator ............. 1471.11 How to Access a municipal profile ......................................................................................................... 1511.12 Sample Municipal Profile .......................................................................................................................... 1531.13 How to Access a Financial Indicator Profile ........................................................................................ 1611.14 Sample Financial Indicator Profile .......................................................................................................... 1631.15 Sample Commercial Building Valuation Report ............................................................................... 1931.16 International Infrastructure Management Manual (IIMM) Pg 2/56 – Types of Data ............ 2051.17 Municipal Affairs Getting Started Toolkit - Asset Inventory Field Descriptions (Pg 6-9) ..... 2071.18 Financial – Capital vs Operations Budget Items ............................................................................... 2131.19 A Guide to the Amortization of Tangible Capital Assets ................................................................. 2151.20 City of Powell River – Asset Management Strategy ......................................................................... 239

Resources List ............................................................................................................ 2611.1 Select Asset Management Organizations ....................................................................................................................2611.1.1 National: ...............................................................................................................................................................................2611.1.2 Provincial:..............................................................................................................................................................................2611.1.3 Other ......................................................................................................................................................................................262

1.2 Select Documents ........................................................................................................................................... 2621.2.1 Various documents on Capital Assets .......................................................................................................................262

1.3 Videos .................................................................................................................................................................. 2631.4 Self Assessments ............................................................................................................................................. 263


WelcomeWelcome to Asset Management for Municipal Staff: The Technical Basics. This course was designed to help you, as municipal staff, complete the asset management process for your municipality.

This course is intended to equip you with a basic understanding of asset management and to help your municipality chart a path towards level 2 of the Federation of Canadian Municipalities (FCM) Municipal Asset Management Program (MAMP) Readiness Scale (hereafter referred to as the MAMP Readiness Scale). As you progress through the course, you will see that the MAMP Readiness Scale is a great resource to support municipalities in improving their asset management practice. After this course, not all municipalities will be ready to reach level 2; however, all participants should take away the skills and knowledge required to progress on the scale.

Some participants may already be familiar with asset management, while others may be new to the subject. This course will allow all participants to build their knowledge and skills, and share their experiences with their colleagues. The agenda includes opportunities for group discussions and exercises, as well as assignments that can be completed after the course to help you build your municipality’s asset management plan.

As municipal staff, your role is to help support your council, make effective decisions, plan for the long-term sustainability of your community, and support effective service delivery by undertaking the day-to-day operations and maintenance of municipal assets.

Your participation in the course is invaluable to you and your colleagues. Over the next two days, you will share your thoughts, insights, and experiences. We will also be asking for your feedback through an evaluation at the end of day 2. Your responses will help us continually improve this material for future deliveries.

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Using the WorkbookVarious icons have been inserted throughout the presentation and workbook. Refer to the table below to see what they mean.

Icon Purpose

Indicates a learning objective

Refers the participant to a resource in Section 9 of this workbook

Indicates a group exercise

Indicates a group discussion question

Indicates a next steps assignment

2 / Asset Management for Municipal Staff: The Technical Basics Participant Workbook

Definitions

Asset: A physical component of a system that enables a service, or services, to be provided.

Asset life: The period from asset creation to asset end-of-life.

Asset life cycle: The stages involved in the management of an asset.

Asset management: A process of making decisions about how infrastructure is used and cared for in a way that manages current and future needs, considers risks and opportunities, and makes the best use of resources.

Asset management lens: Integrating asset management practices into decision-making. Specifically, thinking about what information is available, what additional information is needed, what trade-offs are being made, and what are the community’s long-term goals and needs.

Asset management plan: Documented information that specifies the activities, resources, and timescales required for an individual asset, or a grouping of assets, to achieve the organization’s asset management objectives.

Asset management policy: Outlines an organization’s commitment and mandated requirements for asset management.

Asset management roadmap: Step-by-step plan guiding the actions, responsibilities, resources, and timescales to implement the asset management strategy and deliver asset management objectives.

Asset management strategy: Outlines an organization’s approach for implementing the asset management policy.

Asset management implementation plan: Direction, framework, and approach for implementing the asset management policy to support strategic objectives and sustainable and effective service delivery.

Asset management system: The set of policies, people, practices, and processes that are used in asset management. An asset management system is not a software program.

Asset portfolio: Assets that are within the scope of the asset management system.

Asset register: A database or document containing specific information about the assets owned or controlled by an organization.

Asset risk: The risk of an asset failing to perform the way you need it to (e.g. a pipe bursts).


Average annual life cycle investment (AALCI): The average annual investment needed to sustain an existing asset over its service life and replace or renew the asset once it reaches the end of its service life.

Level of service: Levels of service statements describe the outputs the organization intends to deliver to customers and other stakeholders. Levels of service typically relate to service attributes such as quality, reliability, responsiveness, sustainability, timeliness, accessibility and cost.

Life cycle costs: The total cost of an asset over its life, including capital, operation, maintenance, renewal, and decommissioning costs.

Likelihood: The probability that an event might happen.

Maintenance: Any activity performed on an asset to ensure it continues to deliver an expected level of service until it is scheduled to be renewed, replaced, or disposed of.

MAMP Readiness Scale: A tool developed by the Federation of Canadian Municipalities that guides the assessment of a municipality’s current asset management practices and can serve as a structure for evaluating your progress as you develop a strong asset management program and approach.

National Round Table for Sustainable Infrastructure: The NRTSI was formed in 2015 as an expert resource on infrastructure; a non-partisan body that facilitates the understanding of infrastructure needs and helps to define issues of national priority as well as identify and/or develop and disseminate tools to address these issues.

Operation: The act of utilizing an asset. Typically consumes materials and energy.

Renewal (or asset renewal): The replacement or refurbishment of an existing asset (or component) with a new asset (or component) capable of delivering the same level of service as the existing asset.

Renewal investment: The total investment needed to replace or renew existing assets that have reached the end of their service life.

Risk: The chance that conditions or events may occur to cause an asset to fail.

Risk tolerance: The capacity to accept a level of risk, dependent on the likelihood and severity of consequences, and the existence of other priorities that require more immediate investment.

Strategic risk: The risk of a change occurring that impedes your ability to achieve your overarching strategic goals (e.g. hot, dry conditions put pressure on your ability to provide water service).

Sustainable service delivery: Ensuring that municipal services are delivered in a socially, economically, and environmentally responsible way, and that decisions today do not compromise the ability of future generations to meet their own service needs.


AgendaOver the next two days, this course will take you through three modules, covering the basics of asset management. The course will explore risk and levels of service, what makes for good policy and governance in relation to asset management, and how you — as a leader — can be a champion of asset management within your municipality.

Together, we will identify what information you already have for your municipality, and how you can use that knowledge to advance your journey. We will walk you through the key components and the purpose of an asset management plan. We will conclude by giving everyone the chance to work together to develop a basic outline of an asset management plan.

At the end of this course, you will have the knowledge and tools you need to advance asset management within your municipality.

Day 1 Agenda

Section Time Title

1 8:30 – 8:45 Introduction

2 8:45 – 9:15 Module 1: What is Asset Management? Background Facilitated Discussion

3 9:15 – 10:15 MAMP Readiness Scale – How to assess where you are

4 10:15 – 10:30 Break

5 10:30 – 11:45 Module 1: What is Asset Management? Policy and Governance Facilitated Discussion

6 11:45 – 12:00 Session Summary

7 12:00 – 13:00 Lunch

8 13:00 – 14:30 Module 1: What is Asset Management? Policy and Governance Facilitated Discussion (Continued)

9 14:30 – 14:45 Break

10 14:45 – 16:15 Module 1: What is Asset Management? People Matter Facilitated Discussion

11 16:15 – 16:30 Conclusion - Discussion

Day 2 Agenda

Section Time Title

1 8:30 – 8:45 Introduction

2 8:45 – 10:15 Module 2: Asset Management Data Requirements Facilitated Discussion

3 10:15 – 10:30 Break

4 10:30 – 11:45 Module 3: Asset Management Plans Facilitated Discussion

5 11:45 – 12:00 Session Summary

6 12:00 – 13:00 Lunch

7 13:00 – 14:30 Module 3: Asset Management Plans – Build Your OwnFacilitated Discussion

8 14:30 – 14:45 Break

9 14:45 – 16:00 Module 3: Asset Management Plans – Build Your Own Exercise

10 16:00 – 16:30 Conclusion - Discussion and Evaluation


Module 1

Module 1: What is Asset Management?

After completing this module, participants will achieve the following learning objectives:

• Define asset management and the MAMP Readiness Scale

• Identify where your municipality sits on the five competencies of the MAMP Readiness Scale

• List key asset management questions

• List the key components in an asset management council policy

• Describe the components of a strong asset management strategy

• Explain the concepts surrounding levels of service and the differences between strategic, tactical, and operational levels of service

• Evaluate risk in the context of asset management and service delivery

• List the key steps to lead an organization through asset management implementation

• Describe how to support council in adopting asset management principles

• Explain how you can be an asset management champion in your community

BackgroundLEARNING OBJECTIVES FOR THIS SECTION:

• Define asset management and the MAMP Readiness Scale

• Identify where your municipality sits on the five competencies of the MAMP Readiness Scale

• List key asset management questions

Asset management is a way of thinking about how assets are used to deliver services to a community and its citizens. Asset management helps a community make sure that its physical assets can deliver the levels of service that councils have committed to. Asset management allows a community to examine the services it delivers, understand and manage the risks it faces, and take a holistic view of its assets. Asset management is about making sure communities are sustainable into the future.

The term “asset management” was first coined by an Australian economist, Dr. Penny Burns, and has been in the Canadian municipal lexicon for over 20 years.


Municipal asset management can include all physical infrastructure assets managed by a municipality, such as roads, bridges, water, wastewater, buildings, fleet, recreational facilities and equipment, natural assets, and public safety assets.

In 2009, the Canadian National Asset Management Working Group of the National Round Table on Sustainable Infrastructure developed An Asset Management Governance Framework for Canada1 as a foundation for a sustainable infrastructure management practice. The framework defines asset management as:

An integrated business approach involving planning, finance, engineering and operations to effectively manage existing and new infrastructure to maximize benefits, reduce risk and provide satisfactory levels of service to community users in a socially, environmentally and economically sustainable manner.

The framework identifies community sustainability as the core objective of asset management: building environmental, financial, and social resiliency in communities, and adapting to face a changing world.

Just as every community is unique, no two communities will have the same asset management plan. Each community has unique priorities and challenges. Depending on a community’s needs, some services are more important than others and there is no single solution that will work for everyone. However, to find a unique solution that fits its needs. every community can develop answers to the following key asset management questions.

Key Asset Management Questions

1. What do you have and where is it? Inventory

2. What is it worth? Costs/replacement rates

3. What is its condition and expected remaining service life? Condition and capability analysis

4. What is the level of service expectation, and what needs to be done? Capital and operating plans

5. When do you need to do it? Capital and operating plans

6. How much will it cost and what is the acceptable level of risk(s)? Short- and long-term financial plan

7. How do you ensure long-term affordability? Short- and long-term financial plan

Asset Management in Canada

Asset management takes many forms across Canada and around the world. Many frameworks, guides, and approaches are available, including:

• International Infrastructure Management Manual (IIMM)

• Published by the Institute of Public Works Engineering Australasia (IPWEA), this guide provides direction on how to implement the ISO 55000 standards for asset management.

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• An Asset Management Governance Framework for Canada

• The National Round Table for Sustainable Infrastructure (NRTSI) was formed as an expert resource on infrastructure which included over 50 groups including all orders of government, First Nations, industry, and academia. The NRTSI published An Asset Management Governance Framework for Canada.

• National Asset Management Strategy Canada (NAMS Canada)

• NAMS Canada is a not-for-profit service arm of IPWEA, collaborating with existing associations/organizations in Canada to provide access to IPWEA’s asset management tools, publications, and training.

• Asset Management 101 (Canadian Network of Asset Managers [CNAM])

• CNAM has developed an Asset Management 101 Booklet, with the “what, why, and wow” on infrastructure asset management for your community.

• British Columbia Asset Management Framework (Asset Management BC)

• This high level systemic approach developed by Asset Management BC helps local governments move towards implementation of asset management.

• Asset Management Handbook and Toolkit (Alberta Municipal Affairs)

• Produced by Alberta Municipal Affairs in cooperation with the Consulting Engineers of Alberta, the Asset Management Handbook and Toolkit is a reference guide for municipalities starting their asset management journey, complete with tools and resources.

• ISO 55000

• ISO 55000 is the first set of international standards for asset management.

Regardless of which approach you take, it is the process of asset management that is important: using a set of practices to support effective decision-making and integrating perspectives across functions like finance, public works, and planning.

Asset Management Tools

As part of this process, specific tools will help guide, direct, and control asset management. These include plans, policies, and strategies, as well as clear roles and responsibilities within the organization. While all of these may be found in a fully developed asset management system, they do not need to be in place before you start your journey. Beginning is the most important step, and every municipality will progress at an order and a pace that fits its own needs.

An asset management plan describes how a municipality will actively manage its assets to meet its level of service objectives.

An asset management policy outlines a municipality’s commitment and mandated requirements for asset management. The policy is linked to the municipality’s strategic objectives and is shaped by the organization’s values and priorities.


An asset management strategy outlines the approach for implementing the asset management policy. This framework is the conceptual structure for the asset management system. It describes the system’s internal makeup and its interactions with external practices or functions. The asset management strategy also identifies SMART objectives (i.e. specific, measurable, attainable, relevant, and timely outcomes required of assets and asset management) and reporting requirements. These include service objectives, which are the desired levels of service to the community.

Canadian Infrastructure Report Card: How Sustainable Are Our Assets?

In 2012, several Canadian organizations commissioned the Canadian Infrastructure Report Card (CIRC). It was a first attempt to quantify the state of local infrastructure across Canada and draw a national comparison on the physical state of our communities.

The CIRC found that Canadian municipalities were not investing enough into sustaining their infrastructure, and as a result, much of it was in poor condition. Across the country, practitioners and politicians took notice. The data was clear and apparent: Canadian assets were deteriorating.

Through the hard work of municipal practitioners like you, the CIRC started a national conversation about the sustainability of our communities. This hard work ultimately encouraged the Government of Canada to invest $180 billion over 12 years into Canada’s infrastructure. A good portion of these funds was directed to enhancing the skills and capabilities of municipalities to use the principles of asset management effectively. Enter the Municipal Asset Management Program (MAMP).

MAMP is a five-year, $50 million federal program delivered through the Federation of Canadian Municipalities (FCM) that supports Canadian municipalities in making informed decisions about infrastructure, such as the planning and construction of roads, recreational facilities, and water and wastewater systems.

One of the ways to help support municipalities and staff in this effort was to create a common national benchmark and a common language that municipalities could use to set an end goal. That language is in the MAMP Readiness Scale, developed by the FCM.

Did you know?The Municipal Asset Management Program is a $50 million program designed to help municipalities make informed decisions about infrastructure investment. The program is offered by the Federation of Canadian Municipalities (FCM) and funded by the Government of Canada.


What is the MAMP Readiness Scale?

The MAMP Readiness Scale measures progress of local governments as asset management practices are adopted. It provides a common method for assessing progress—or level of adoption—across many groups, and it allows municipalities to assess their current state against a progressive scale.

The MAMP Readiness Scale includes five competencies: policy and governance, people and leadership, data and information, planning and decision-making, and contribution to asset management practice. As municipalities build their asset management skills and capacity, they implement components of asset management that are farther along the scale.

MAMP Readiness Scale Competencies:

• Policy and governance: Putting in place policies and objectives related to asset management, bringing those policies to life through a strategy or framework, and then measuring and monitoring implementation over time.

• People and leadership: Setting up cross-functional groups with clear accountability and ensuring adequate resourcing and commitment from senior management and elected officials to advance asset management.

• Data and information: Using asset data, performance data, and financial data to support effective asset management planning and decision-making.

• Planning and decision-making: Documenting and standardizing how the organization sets priorities, conducts capital and operations and maintenance planning, and decides on budgets.

• Contribution to asset management practice: Training and staff development, sharing knowledge internally and participating in external knowledge sharing.

Each asset management competency includes five levels of maturity (e.g. levels 1–5). The five levels form a progressive scale, from initial investigation to adoption and, eventually, full integration of asset management practices into daily routines. The outcomes described at each level show, in practical terms, what it means to be at that level.

It is common for municipalities who are new to asset management to be at a level 1 or pre-level 1 point for all competencies. This information can help you set goals and objectives, and design initiatives for MAMP funding, as well as longer-term priorities for improving your municipality’s asset management practices.

RESOURCESFCM Municipal Asset Management Program – Asset Management Readiness Scale

Canadian Infrastructure Report Card – Asset Management Primer


Exercise 1.1: Assess Where You Are on the MAMP Readiness Scale

Understanding where you are today is an important part of moving forward. This individual exercise will help you assess where your municipality is at in relation to the MAMP Readiness Scale. Refer to the MAMP Readiness Scale in Section 2.5 of the reference material in this workbook and identify the readiness level for each competency that best describes your municipality today.

In the table on the next page, add the readiness level in the second column and use the notes column to document why you chose this level.

What specific actions has your municipality taken that correspond with this level? Remember that many municipalities begin at level 1 or pre-level 1 on the scale, and that many of Canada’s largest cities have not yet reached the upper levels of the scale.

Once everyone has completed this self-assessment, share your observations and learnings with the group.

Assessment Management Readiness ScaleCompetency Readiness Level Notes

Policy and governance

Putting in place policies and objectives related to asset management, bringing those policies to life through a strategy and framework, and then measuring and monitoring implementation over time.People and leadership

Setting up cross-functional groups with clear accountability and ensuring adequate resourcing and commitment from elected officials to advance asset management.Data and information

Using asset data, performance data and financial data to support effective asset management planning and decision-making.Planning and decision-making

Documenting and standardizing how the organization sets priorities, conducts capital and operations and maintenance planning, and decides on budgets.Contribution to asset management practice

Training and developing staff, sharing knowledge internally and participating in external knowledge sharing.


Policy and GovernanceLEARNING OBJECTIVES FOR THIS SECTION:

• List the key components in an asset management council policy

• Describe the components of a strong asset management strategy

To allow for the effective and long-term implementation of asset management in your municipality and to allow for its integration into day-to-day operations, asset management must also be integrated into your municipality’s governance framework. We will get into the details of building asset management plans later in the course. We first want everyone to understand the importance of asset management as a governance tool.

A key component of asset management is the policy and governance framework supporting the creation and use of actual asset management plans. The big picture includes many different parts: effective linkages between a council’s broad strategic plan for the community, a clear policy outlining the organization’s commitment to asset management, an organizational strategy outlining how asset management will be implemented, and defined roles and responsibilities for staff.

This section of the workbook focuses on implementing asset management in your municipality.

As municipal staff working in local government, you know the role that council plays as elected representatives of the community. They determine the annual operating and capital budgets and the taxes that citizens will pay. Council also determines the policies behind taxation, fees, and services, and how the assets that deliver those services will be managed. Council is the final authority in determining the policy framework that the municipality will work within to ensure it achieves council’s strategic intent.

Council also has the ability and authority to approve an asset management policy that outlines its commitment to asset management. The policy is linked to the organization’s strategic objectives and is shaped by the organization’s values and priorities.

The asset management policy is the bridge between a council’s intentions and priorities and the municipal staff’s actions. It is a formal and lasting statement of what is important to that council and outlines what is expected of municipal staff. It provides a backdrop from which municipal staff can prepare budgets, programs, and activities—all with the goal of meeting the community’s expectations.

And just as every community is unique, asset management policies are unique. Although they may have similar elements, a municipality’s asset management policy reflects the council’s intent and direction and the communities it serves. Generally, effective policies begin with input from the public and councils. What do they want to achieve? What is important to them?


Why is this important? Because public policy must be supported by the constituents it is intended to serve. It must achieve a benefit for the community—one that is widely recognized. A public policy without support from constituents typically does not enjoy a long shelf life. Additionally, communities and citizens increasingly want to participate in making decisions that affect them.

The International Association for Public Participation (IAP2) is an international association whose mission is to advance and extend the practice of public participation. IAP2 has a wealth of resources and training opportunities available to help organizations effectively engage the public in many ways. That does not mean that citizens get to decide in all cases, but they at least get to participate. This participation is best described as a spectrum, as illustrated in Figure 1.

Figure 1: Spectrum of Public Participation (adapted from IAP2)

Once the public and council has had an opportunity to participate in the development of a policy framework, it is the municipal staff’s role to author and table the policy document for council’s approval.

RESOURCES

International Association of Public Participation Spectrum

(www.iap2.org)


GOAL

PROMISE

To provide balanced objective information in timely manner.

“We will keep you informed”.

To obtain feedback on analysis, issues, alternatives and decisions.

“We will listen to and acknowledge your concerns”.

To work with the public to make sure that concerns and aspirations are considered and understood.

“We will work with you to ensure your concerns and aspirations are directly reflected in the decisions made ”.

To partner with the public in each aspect of the decision-making.

“We will look to you for advice and Innovation and incorporate this in decisions as much as possible”.

To place final decision making in the hands of the public.

“We will implement what you decide”.

INFORM CONSULT INVOLVE COLLABLORATE EMPOWER

INCREASING LEVEL OF PUBLIC IMPACT

Asset Management Policy Structure

Purpose

An asset management policy clearly sets out a council’s commitment to asset management and provides high-level guidance to staff in carrying out the municipality’s strategies, plans, and activities. While council policies are typically general, they should clearly identify:

• Who is responsible for what aspects of asset management?

• How asset management fits within the municipal structure?

• How and when staff will report to council on the implementation of the policy?

• How and when staff and council will evaluate and review the effectiveness of the policy?

Once council adopts an asset management policy, it is the responsibility of the chief administrative officer (CAO) and staff to implement it by developing guidelines and practices and assigning roles and responsibilities.

Although an exercise and samples are provided in this workbook, every municipality is unique and likely different from the example we have created, Albertaville. Remember: one size does not fit all. Every policy needs to reflect the culture of the community, the organization, and council. The process to recommend an asset management policy to council should be holistic and inclusive. Input should be sought from the organization, staff, council, and the community itself.

Structure

Asset management policies are all different, but typically follow the same structure and contain similar elements, such as:

• Policy statement: describes what the policy sets out to achieve

• Scope: defines what is and is not covered by the policy

• Principles: identifies the core principles that the organization believes are required to give life to the policy

• Roles and responsibilities: describes who in the organization is responsible for what

• Review frequency: specifies how often this policy will be reviewed

Engaging Your Council

By design, council’s approval and endorsement are required to create corporate policy. These policies are typically created with the input and advice of staff, education and discussion with council, and then, finally, formal approval. As with all new initiatives, council education is essential to completing a successful approval. Holding workshops, information sessions, and council debates are all important parts of the approval process.


Engaging Your Community

Municipal governments exist to provide services to citizens. Citizens are the ultimate stakeholder in the activities of municipalities. However, citizens are often unaware of the costs associated with operating a municipality, or the variety of services that municipalities deliver. Municipalities can engage their community in the asset management and service discussions in many ways, including:

• Open houses

• Municipality website

• Post your asset management plan online

• Table an annual report with your council on the state of your assets

• Public meetings

• Public presentations

• Newspaper articles or editorials

• Public advertising

• Speaking engagements at service clubs

Additionally, when engaging your community, be sure to describe the benefits of asset management in language that is meaningful to citizens, such as:

• Cost savings

• Better control over life cycle of assets

• Reduced risks (e.g. unplanned repairs, costs)

• Well defined levels of service to citizens

• Efficiently prioritized maintenance

• Improved decision-making

• Responsible spending

Exercise 1.2: Create an Asset Management Policy

This individual exercise is designed to help you start thinking about developing an asset management policy for your community. It is broken down into five questions. Take some time to read each question, reflect on your answer then write down your ideas. You can share your answers with the group in about 20 minutes.

A. How can you engage your council in helping them develop an asset management policy? What are some ways that you could engage your community to gain their input into an asset management policy?


B. Using the sample asset management policy and the examples below, create what you think would be an appropriate policy statement for your municipality.

Sample Policy Statements

Albertaville shall adopt and apply asset management practices to provide for the effective management of current and future assets to ensure safe, reliable, and sustainable services to its customers.

The purpose of this policy is to provide leadership and commitment to asset management and provide a set of principles that guide Albertaville’s development and implementation of an asset management system which is consistent across the organization.

This report outlines the asset management policy to provide program principles and a framework for asset management practices that enables a coordinated, cost-effective and organizationally sustainable approach for Albertaville.

Albertaville shall adopt and apply asset management practices in support of delivering quality, cost-effective services to its customers. Albertaville will adopt a sustainable approach to asset management, ensuring that the asset base is not increased without considering the impact on the ability of Albertaville to fund future maintenance and rehabilitation.

Create your policy statement in the space below.


C. While there are many assets within a municipality, they do not all fall under the direct responsibility and control of the local government. Circle the assets in the table below that fall under your municipality’s responsibility and could be included as part of your asset management policy. Feel free to list additional assets in your municipality that may not be on the list.

Watermain Sewer Roads Sidewalks

Recreation centres Town halls Curling rinks Cemeteries

Fire halls Water treatment plants Hospitals Forests

Parks Schools Highways Light standards

Municipal garages Arenas Pools Lift stations

Power lines Rivers Environmental reserves

D. Principles are the foundation for making operational decisions and provide guidance to municipal staff in how to design programs. Below is a list of several principles that might be found in a municipal asset management plan. Identify with a checkmark the principles that you feel would be best included in your municipal asset management policy.

_____ Corporate Alignment: Alignment with corporate vision and goals will be enabled through this policy and the asset management framework.

_____ Life Cycle Management: Assets will be managed recognizing the whole of life ownership costs.

_____ Build Organizational Resiliency: The municipality will document policies and procedures to ensure that knowledge and learnings are retained.

_____ Community Input: The municipality will endeavour to incorporate public input into the development of asset management plans and level of service targets.

_____ Service Levels Define Investment: Service levels will be the primary means to plan programs and set budgets.

_____ Responsibility and Accountability: The roles, responsibility, and accountability for the management and use of each asset will be clearly defined.

_____ Transparency: The municipality will openly report on our progress and the state of the community’s assets.

_____ Evidence-Based Decision-Making: The municipality will maintain effective records of data required to support decision-making through the assets lifecycle including; inventory, condition, and performance.

_____ Complaints Define Service: Public complaints are important measures of the quality of service. Services and assets with the most complaints should get the most money in a budget.

_____ Department Alignment: Asset management and budgeting decisions will be made in alignment with department vision and goals.


E. Responsibilities for asset management vary between groups within an organization. To work well, each group must fulfil their own specific role. Below is a sample list of roles and responsibilities that might be found in a municipal government. Review the list and, in the space beside the statement, indicate which group would have which responsibilities. [1-Council; 2-CAO; 3-Staff].

_____Develop and review the asset management policy

_____Regularly review the status of the municipality’s assets and asset management program as part of the annual budget process

_____Act as stewards for assets while considering current and future users

_____Ensure services are both affordable and sustainable

_____Set levels of service, risk, financial and environmental cost standards that align with the community vision and goals

_____Make decisions regarding assets in accordance with council’s corporate and community strategic directions and asset management policy and strategy.

_____Approve asset management plans

_____Ensure the community receives value for money from the expenditure of funds.

_____Ensure that timely, accurate, and reliable information is presented to council to support decision-making

_____Create and maintain a governance structure to lead the development of asset management practice throughout the organization

_____Establish and maintain asset management planning and business processes, linked to the strategy, resources, delivery, and operational plan for consideration by council

_____Ensure the view of the community and key stakeholders are integrated into the asset management plans

_____Ensure all program actions are both effective and efficient

_____Implement the details of the plans and asset management systems

_____Establish clear requirements for external suppliers providing program planning and delivery support consistent with this policy and supporting strategy and plans

NEXT STEPS:

Now that you have completed Exercise 1.2, you have all the information you need to create an asset management policy for your municipality and to work with your council to have it approved. Use the Reference Policy and Sample Council Report and work with your team to have this implemented.


Remember!Your council may be going through a similar workshop designed for elected officials in the spring of 2018. They will learn about similar topics, with information applicable to them in their council role. Aim to create the policy and get it ready for council approval while all this information is fresh in their minds!

Asset Management Strategy

A strategic plan is a guiding document that organizations use to focus their actions towards a long-term goal or objective. Most organizations and municipalities have a corporate strategic plan that is approved by their council which sets out long-term goals and objectives for the community. You can apply the same principles to developing your asset management strategy: envision the long-term goals for your asset management system and turn them into a multi-year strategy.

Not all strategic plans are created equal. The strongest strategic plans (and statements) typically have core elements that set them apart from others. These elements are: vision, mission, objectives, and measures.

Perhaps one of the most recognizable strategic statements in the world is the one that President John F. Kennedy delivered to the US Congress in 1961:

“I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.”

This speech galvanized the nation and aligned the United States government towards achieving President Kennedy’s goal. The core elements in the statement are:

• Vision: Commit to landing on the moon by the end of the decade

• Mission: Commit the nation

• Objectives: “Landing a man on the moon”; “Returning him safely”

• Measures: “Before this decade is out”

RESOURCES

A guide to Developing a Municipal Asset Management Policy

Sample Asset Management Policy

Sample Albertaville Council Report


On July 21, 1969, Neil Armstrong was the first person to set foot on the moon and return safely to Earth.

In an era of commercial satellite launches, reusable rockets, and space tourism, it is difficult to imagine the impact that the President’s words had. What if his words had been different? What if those words were not as clear? Would a statement like “Hey guys, let’s build some kind of rocket, put a guy in it, and when it is finished, we’ll send it into space and see what happens next” have had the same impact? Likely not. President Kennedy’s language was precise, and that helped guide the nation to achieve his vision.

For municipal leaders, the challenge is no different. Whether you are advising your council on the appropriate policy and strategy or leading your teams to best supports your council’s goals, language matters.

As leaders, you can influence in multiple directions: you influence your council upwards and you influence your organization inwards. The language you use to communicate will vary your degree of influence. See Table 1 for example of vague vs. strong language choices.

Table 1: Examples of Vague vs. Strong Language Choices

Plan Element Vague StrongVision Be the preeminent nation in

space

Commit to sustainably managing our assets

Commit to landing on the moon.

Commit to implementing an asset management plan.

Objectives Improve our space program

Improve our asset management program

Land a man on the moon and return him safely.

Start developing an asset management plan by the end of 2018. Implement our asset management plan and use it to make decisions by the 2020 budget.

Measures Over time

Continually improve

Before this decade is out.

Reach MAMP Level 2 Asset Management Readiness by 2020.

Beyond vision and strategy, concrete steps and actions are required to bring asset management to life. As staff, you are responsible to align resources, assign responsibilities, and create activities that achieve council’s stated polices. Just like NASA did not just “build some kind of rocket”, you need a plan to achieve your municipality’s goals for implementing asset management. Several possible steps* may be taken:

• Have senior management commit to developing an asset management policy.

• Educate council on the benefits of an asset management policy.

• Have council approve an asset management policy.

• Define expected benefits of an asset management policy and plan.


• Define responsibilities for the development and implementation of an asset management plan.

• Assign specific responsibilities to staff as part of an asset management plan.

• Assign a cross functional team to oversee the corporate development of an asset management plan.

• Verify that council is aware of the benefits of an asset management system and that required funds are allocated.

• Obtain basic inventory data for most assets (e.g. size, material, installation date, location)

• Incorporate asset management data into budget presentations to council.

• Use asset management approaches consistently across the organization.

• Train staff with the knowledge they need to effectively implement an asset management plan.

• Maintain records for assets and document methods to keep those records updated.

• Use asset management processes to inform operating and capital budgets.

*From the MAMP Readiness Scale

Exercise 1.3: What is Your Asset Management Strategy?

We have covered a lot of material on asset management strategies. This individual exercise is designed to help you start thinking about developing an asset management strategy for your community. It includes two questions, A and B. Take some time to reflect on the concepts that were presented, read the questions then write down your thoughts. You can share your answers with the group in about 15 minutes.

A. What should be your municipality’s asset management vision?


B. What steps does your municipality need to take over the next four years to implement an asset management plan?

2018 2019 2020 2021

HINT: Remember to review the asset management framework slides and the FCM MAMP Readiness Scale to see where you may need to focus your efforts.

Levels of Service and RiskLEARNING OBJECTIVES FOR THIS SECTION:

• Explain the concepts surrounding levels of service and the differences between strategic, tactical, and operational levels of service

• Evaluate risk in the context of asset management and service delivery

When asset management was first introduced in Canada, there was a significant focus on the inventory and condition of assets. As the state of the practice has progressed, the role of policy and governance of local assets (i.e. the policy decisions made around the management of assets and the services delivered to communities) became clearer and more important.

Clear levels of service are the cornerstone of service delivery in government. Service levels set the targets that municipal officials strive to meet. They have a significant impact on the cost to provide services to communities and define requirements for equipment, personnel, and capital budgets. The higher the service level, the higher the cost.


Another dimension of effective governance is risk management. Good governance—in both the private and public sectors—always considers risk, and local government is no different. Risk is the combination of the likelihood that an event will occur and the impact if it does. Calculating risk is not an exact science and it is unique to every community and council.

The good news is that we can take steps and actions to minimize risk. We can create a level of service that will reduce the risk to our communities to a level that our councils endorse. By doing so, we establish what is important to our communities, what services we will deliver, and the cost to deliver those services.

In municipal government, defining the level of service is an early step in delivering effective and sustainable services. However, not all measures of level of service are created equally. They are broadly grouped into one of three categories: strategic, tactical, and operational. Terminology varies for these descriptors across Canada and the world, but the principles remain the same. Figure 2 demonstrates the linkages between all three categories.

Figure 2. Three Categories of Levels of Service

Strategic Level of Service

A strategic level of service describes broad outcomes that have significant impacts on the community and citizens. These are typically approved by council and could include the goals of significant documents, like the municipal development plan or transportation master plan. Examples of these levels of service are:

• Percentage of roads in good/fair/poor condition

• Percentage availability of potable water from the municipal system

• Hours to clear roads after a snowstorm

• Recreation centre has capacity to meet demand 85% of the time


Community StrategiesStrategic plansPolicies

Risk plansHealth and safetyPerformance measuresLegal complianceService plansLifecycle plans Valuations

Maintenance (Reactive / Preventative)Operations managementSub contractorsSite safetyRegulatory compliance

Strategic

Tactical

Operational

Tactical Level of Service

A tactical service level is linked to the operation of an asset. Typically, it would be described as what needs to be done to achieve the strategic level of service. Examples of these levels of service are:

• Percentage of roads renewed/repaved per year

• Number of watermain breaks per year

• Kilometres of roads plowed per shift after a snowstorm

• The percentage utilization of ice time during evening hours

Operational Level of Service

An operational level of service typically describes the operational measures and can be used for trending and analysis, and to improve program delivery. Examples of these levels of service are:

• $/m2 for road renewal/repaving

• $/repair for watermain breaks

• $/km to plow snow from roads

• $/hr operating cost for recreation facilities

Consumers make choices about levels of service all the time. When you book a hotel room, you choose your room based on the hotel’s rating and the associated cost. You expect a higher level of service from a five-star hotel than a one-star hotel and you understand that a higher quality hotel room will likely come at an increased cost. Based on your priorities as a consumer, you balance between an acceptable level of service and a cost that is affordable.

Municipalities face essentially similar situations. Programs are developed and implemented to deliver services to citizens. Those services have a cost, and that cost is translated into taxation. Ultimately, every property owner pays for every service you deliver.

While every community deliberately chooses the levels of service it delivers to its constituents, these levels of service are not always static and are subject to change, based on the evolving needs and desires of the community.

Example: RoadsHow would you apply levels of service to graveled roads?

In your municipality, you are responsible for managing the gravel roads. The program you’ve put in place (e.g. your current level of service) to keep them in reasonable condition is to grade them once per month in the summer. The current level of service can be either increased or decreased: this will change the condition of the roads and will have a corresponding change on the costs.


Exercise 1.4: Working with Levels of Service

This exercise is designed to make you think about different levels of service. Working with a partner, review the sample levels of service listed on the next page and link the sample level of service to the appropriate category (e.g. strategic, tactical, operational). Note any additional key levels of service goals in the table below.

Category Level of Service

Strategic

Tactical

Operational

Frequency of Grading Effect on Level of Service Effect on CostsEvery two weeks

Monthly -------- --------Every tow months

When levels of service change, so do costs. In almost every case, a higher level of service results in increased costs of delivery. Whether the higher level of service is more hours at a recreation centre, faster time to clear roads after a snowfall, or improved road conditions, service equals cost.


Reminder!Even though assets have a level of service for today, that can change over time. If your community is not happy with the state of the roads, the desired state could be improved condition ratings. If your community priorities are sport and recreation, perhaps a second sheet of ice is the desired state. Or, if taxes are felt to be too high, costs could be lowered by reducing some levels of service. It can go both ways!

Sample levels of service:

Roads

_____Target paved road: 15% poor, 55% good, 30% very good

_____Potholes patched within 48 hours of notification

_____Snow plowed from main streets 48 hours after a snowstorm

_____$/km target for snow plowing costs

_____$/m2 target for repaving costs

_____Graveled roads graded every week

Sidewalks

_____Sidewalks on all urban cross section streets

_____Annual sidewalk inspection program for trip and fall concerns

_____Accessible curb ramps are installed at all intersections and crosswalksRecreation Centres and Facilities

_____Recreation centres achieve 40% cost recovery

_____Recreation centres have no more than two unplanned closures per year

_____Facility condition index for recreation centres is below 0.10

_____Daily janitorial cleaning

_____Quarterly pool / arena equipment service

_____Annual roof cleaning and inspection

Water

_____Maintain adequate fire flow volumes in 100% of the network

_____No more than five breaks/km on a segment of waterline

_____Household potable water services available 99% of the time

_____100% of water quality tests meeting or exceeding Regulations

Sewer and Drainage

_____Storm sewer and sewer system is designed to accommodate a 1:100- year storm event

_____Sewer backups occur less once per 50 km of sewer main per year

_____Trunk sewer lines are flushed 2x/ year; residential sewer lines are flushed 1/year

Environment

_____Tonnes/capita of refuse entering the landfill

_____% of material diverted from the landfill through recycling initiatives

_____$/household to collect and dispose of refuse


Risk

Effective governance—in both the private and public sectors—always considers risk. Local government is no different.

Risk is all around us and is always present. Risk is uncertainty. Risk can be quantified by combining the likelihood that an event will occur and the impact if it does. However, risk is not an exact science and is unique to every community and council.

Although risk is ever-present, steps and actions can be taken to minimize it. A structured risk assessment will allow you to think through all the things that might go wrong, look at them through the lenses of likelihood and impact, then determine what to do about it.

Likelihood is the probability that an event might happen. For example, while it is unlikely that your municipality may be the epicenter of an earthquake, it is somewhat more likely to be affected by a significant summer storm. Similarly, it is highly likely you will experience at least one significant snow storm this winter that will create transportation challenges in your community. Risk can also materialize through the failure of infrastructure (e.g. culverts being washed out or sewers collapsing). Likelihood is a measure of how probable it is that an event will occur, and can be broken into three categories:

• Low: Highly unlikely to improbable

• Medium: Somewhat likely

• High: Highly probable

Impact is the consequence if an event occurs. If an earthquake occurred in your community, it might be catastrophic, especially if it is a large magnitude earthquake. If a significant summer storm hits your community, blowing down trees and power lines, flooding streets and washing out culverts, the consequence might be moderate. Impact is therefore a measure of how severe the event might be. It can also be broken down into three categories:

• Low: Measurable

• Medium: Moderate

• High: Catastrophic

Figure 3 shows a sample risk matrix that uses the two dimensions of likelihood and impact to quantify risk.

Figure 3. Sample Risk Matrix

Medium

Impa

ct

Likehood

Medium

Medium

Low

Low Low

High

High

Critical


Exercise 1.5: Assessing and Managing Risk

This exercise is designed to make you think about potential events that pose a risk to your municipality. Work with a partner to complete the two parts of this exercise.

A. Document potential events in the table below. What events might occur that you need to consider? What could cause harm and negatively impact your community? Discuss the event, the likelihood that it might happen, and the impact if it did. Use the sample risk matrix to rate the risk as low, medium, high, or critical.

Item No.

What can go wrong?

How does this affect the level of service?

Impact Likelihood Risk rating

0 Bridge Collapse Safety, environment, loss of public trust, road closure

High Moderate High

1

2

3

B. Now that you have identified several events that could occur in your community, think about what you could do to lessen their impact on the community. Take the risk and the rating from the table above and transcribe them in the table below. From there, work with your partner to think about steps that your municipality could take to reduce the impact on your community.

Consider the bridge example: could you increase the frequency of inspections to catch problems earlier? For summer storms, could you have a well-exercised emergency plan, or ensure that your stormwater systems are well maintained? For winter storms, could you use an Environment Canada early warning service, or have contract resources on standby?

Item No.

What can go wrong?

Risk rating

Action to lower risk

New risk rating after taking action to lower risk

0 Bridge collapse

High Inspect every bridge annually

Medium

1

2

3


Asset Management LeadershipLEARNING OBJECTIVES FOR THIS SECTION:

• List the key steps to lead an organization through asset management implementation

• Describe how to support council in adopting asset management principles

• Explain how you can be an asset management champion in your community

When your municipality chooses to initiate an asset management approach, the ultimate goal is to ensure that you invest your resources well, meet citizen service level expectations, and achieve the organization’s strategic plan effectively and efficiently.

Asset management also provides a means for councilors and municipal staff to demonstrate the value of infrastructure planning and maintenance while balancing social, environmental, and economic factors. Once your plan is in place, you will be able to say:

Our organization uses a formalized and holistic approach to ensure that our resources are invested wisely over the long term, continually balancing operations, risks, and costs in a way that provides our community with the right service at the optimal cost—not just today, but with our community’s future needs in mind.

To create that future, it takes leadership. That leadership will come from each of you: you will be asset management champions in your organization, for your council, and for your community.

Organization

Effectively moving your organization forward takes both strategy and action. As a leader in your organization, you need to look at the work required and ensure that it is assigned to the right position, that the people have the right skills, and that they have the right authority and resources to do their jobs well. It takes more than simply saying it to make it happen.

Organizations work because they are designed to work, and that design typically follows the sequence of “Strategy > Structure > People > Process.”

The design starts with strategy. The strategy (developed in Exercise 1.3) sets out the broad direction, outlines the tangible goals and objectives, puts firm dates on deliverables, and outlines how to measure your success. It defines what it is the organization needs to achieve, and when it needs to achieve it.

Structure follows strategy. The structure of an organization defines who reports to whom, and which positions have which responsibilities. When you have a clear strategy, it is much easier to create a structure to support it.

“Strategy without action

is hallucination. Action without

strategy is chaos.”


Organizations succeed because of people. People create success when they are passionate about what they do and are engaged in their organization. It’s all about people. Ensuring that the people in your organization have the right skills, training, and resources to succeed is critical. Set out clear expectations for your staff so they know what they need to do to succeed.

Process helps people. Without processes in place, everything is a new adventure every time you do it—maybe not in a good way. Processes make sure that repeating activities are repeatable. Process makes sure that people know who does what, and what to expect when. Good process is the grease in the wheels of the organization.

In large organizations, each person may have only one specific job. In small organizations, one person may wear many hats, and have many responsibilities. There is no one size fits all model, and the answer to who does what is specific to your organization.

In some cases, you may have a single position in your organization that is dedicated to supporting your asset management program. In other cases, you may split those duties across multiple positions to achieve the same results. In either case, the duties and responsibilities stay the same, but they may reside with different people.

The sample organizational chart shown in Figure 4 shows a sample outline of responsibilities and duties that may be found in a typical organization. Remember, while your organization may look different, the responsibilities may still be the same.

Figure 4. Sample Organizational Chart


Exercise 1.6: Organizational Roles and Responsibilities

This individual exercise is designed to help you think about asset management roles and responsibilities for your municipality. In the box below, sketch an organizational chart for your municipality and identify where you think some of the asset management roles and responsibilities should reside.

Some of the key asset management roles and responsibilities that you may want to consider include:

• Asset accounting/reporting (TCA), GIS and data storage, work order, and job cost reporting

• Financial planning, long-term financial forecasting

• Capital planning and budgeting

• Operational service delivery and reporting

• Inventory evaluation and condition assessment, service life evaluation, replacement cost valuation

• Policy and program development

• Level of service determination

• Asset inventory and condition ownership

• Corporate planning

• Asset management training and education

Organizational Chart


Reminder!Creating change in organizations can be difficult. Organizations have inertia and can be resistant to change.

As an asset management champion, your efforts to raise the bar are critical.

Here are some tips to help you accomplish this change:

• Ensure early and regular discussions with the senior leadership team about why asset management is important.

• Ensure that the benefits of implementing asset management are well understood across the organization.

• Communicate plans and intentions widely in the organization.

• Make sure that your people have the skills, resources, and capacity to be successful. Set them up for success!

• Be clear with the assignment of responsibilities and expectations for deliverables.

Council

Your council members may have attended a course similar to this one, specifically designed for elected officials. They will have learned some of the same concepts that you are learning over these two days, but targeted towards their role as decision-makers. This is your opportunity to help them capitalize on the similar learnings that you have experienced. They may be waiting for your leadership.

What can you do? You can help your council move forward in many ways, such as:

• Raise council’s awareness of asset management since they may not all have taken the elected officials course. Educate them on what you have learned and how the two courses (e.g. elected officials and municipal staff) complement one another.

• Hold briefing sessions with your council to share general information on asset management and engage them in discussions about the state of the community’s services and assets.

RESOURCES

Cross functional team memo and terms of reference

Refer to the following resources in the Reference Material section of this workbook to get started.


• Encourage your council to consider level of service and risk when making decisions on planning, service, and financial matters. Continue to link levels of service to cost, ensuring that they fully appreciate that higher service increases cost—and vice versa.

• Discuss the needs of the organization to start implementing an asset management policy and asset management strategy. Ensure that they are aware of the need for a cross-functional team: although this may require resources, it will ultimately lead to better and more sustainable outcomes.

• Engage your council in a discussion over the significant risks that face your community, and what you are doing to manage them. Ensure that they are aware of the role they play in risk management.

• Report annually on the state of your assets: ensure council knows their condition and what long-term investment may be required.

Community

Although the community is represented through the organization, their support and trust in the municipality and its policies are critical. A council requires the broad support of the community to be effective. As a leader, you can help engage the community in the asset management discussion by being a strong and visible champion. By creating opportunities for public engagement and dialogue, you invite the community to participate in the decisions affecting them. By being transparent about the services you provide and their long-term costs, you can help build understanding and support for the actions you are taking.

What can you do? You can take many actions to engage the community in the asset management planning process and express the challenges your municipality faces, such as:

• Ensure your municipal web page has up to date information on your asset management plan.

Remember!Council is the elected body, but they rely on your professional leadership to advise them and help move the municipality forward. They are probably waiting for you to show them the path forward!

RESOURCES

Sample Albertaville council report


Remember!You are not alone!

There are many municipal professionals just like you who are going through the same steps. They are building awareness with their council, changing how the organization works, and engaging their community. Your peers are a powerful and deep resource for you to access.

Use the reference material in the back of this workbook. Become involved with your peers in the asset management field.

Attend an IAMA workshop and become a member!

• Post links on your municipal web page to relevant infrastructure information (e.g. the Canadian Infrastructure Report Card) so it is easily accessible by curious citizens.

• Be interviewed with your mayor/reeve by the local news organization: use it as an opportunity to talk about asset management in the public domain and what the municipality is doing to ensure sustainability.

• Hold open houses during your annual budget process and ensure that asset management and levels of service are part of the conversation.


Module 2

Module 2: Asset Management Data Requirements

After completing this module, participants will achieve the following learning objectives:Identify what data may already be available to begin the asset management journey.In the context of Tangible Capital Asset, explain the difference between anticipated asset life and functional asset life.Recognize what data is already available and what may be missing (and how to get it).Know how to evaluate assets as they age and their condition changes over time, and how to best capture that information to make decisions.

After completing this module, participants will achieve the following learning objectives:

• Identify what data may already be available to begin the asset management journey.

• In the context of Tangible Capital Asset, explain the difference between anticipated asset life and functional asset life.

• Recognize what data is already available and what may be missing (and how to get it).

• Know how to evaluate assets as they age and their condition changes over time, and how to best capture that information to make decisions.

Asset Management Data RequirementsLEARNING OBJECTIVES FOR THIS SECTION:

• Identify what data may already be available to begin the asset management journey.

While risk and leve